Energy conservation is one of the most important investments that existing business owners can employ in their physical infrastructure to increase profits while helping the environment. The “low-hanging fruit” in building efficiency investments has been harvested, such as the installation of energy efficient windows, heating systems, and building insulation.
The commercial building market comprises commercial and governmental offices, campuses, restaurants, and healthcare facilities. Significant progress has been made, especially at the commercial level, in reducing energy consumption. Many large buildings are undergoing ‘skin’ retrofits—energy saving windows and insulation along with retrofits to the HVAC (Heating, Ventilating and Air Conditioning) systems to increase energy efficiency. Solar panels and wind farms are gaining adoption to supplement energy efficiency.
Commercial electric rates are higher than residential, thus providing a faster payback on the investment. Homes consume about 22% of the nation's energy, versus 49% for commercial and industrial buildings, according to the Department of Energy (DOE). And not surprisingly, commercial and industrial buildings waste a disproportionate amount of that energy.
In the US, the average power generating station was built in the 1960s and new plants, due to cost and the permitting process, are not coming on-line rapidly enough to deal with the increased demand for energy. The demand to reduce energy consumption is now attracting ESCOs (Energy Service Companies) to evaluate end point energy usage and provide solutions that are financed by the ESCOs thru project financing and performance contracting. While these efforts have resulted in substantial energy savings, none focuses upon the final usage endpoint, the electrical outlet or switch. Computers, printers, copiers, and other devices continue to consume energy even when not in use. Overnight, weekends and holidays—even in standby, energy is consumed and wasted.
Owners are demanding more information about the performance of their buildings so they can reduce operating costs and meet corporate sustainability goals. They are anxious to take full advantage of recent technology advancements that permit cost effective reduction in energy usage. Despite the best efforts of building owners, facility, and company managers to instruct employees to shut down equipment when not in use, few, if any do. Much like soaring healthcare costs due in part to consumers not shopping for the least expensive care, individuals have little incentive to reduce energy usage since the attendant savings do not accrue to the individual. Consider that many commercial buildings are open and operational only 30% of the total hours per week, although their computers and office equipment are left on 100% of the time.